Legal System Of Indemnity In Marine Cargo Insurance

Marine cargo insurance plays an indispensable part in the field of international trade, whereas, in China, the whole legal system in relation to indemnity of marine cargo insurance appears not systematic and comprehensive, resulting in many disputes in practice. It seems that profound research and study is very necessary in this field. On the basis of an overview to the whole legal system relating to indemnity of marine cargo insurance, this paper is trying to put forward some valuable suggestions for the problems in the said system from different viewpoints such as legislation, judiciary and practical operation. Hopefully, this paper could be helpful for the systematization of theories in the said field.This paper consists of two parts: The first part is a general overview of the whole legal system in the said field, and the second part is intended for concentrating on those detailed issues.On summarizing the characters of indemnity in marine cargo insurance, the first part will discuss the affections of shipping, trading and insurance industries to the legal system of indemnity in marine cargo insurance, and then the status of the basic principles of marine insurance in the legal system of indemnity in marine cargo insurance. In the first part, some comparative study is also made between the legal system of indemnity in marine cargo insurance and the legal system of indemnity in carriage of goods by sea.The second part is intended to make further research on the detailed content in the legal system of indemnity in marine cargo insurance on the basis of the first part. The content is mainly as follows: 1, The foundation of the legal system of indemnity in marine cargo insurance is the fact that the insured pay the premium in exchange for the duty of the underwriter to take the burden of risks. From this point of view, this paper will discuss various kinds of risks in marine cargo insurance, some demerits of the provisions relating to risks in Chinese insurance clauses, and some issues about payment, additional payment and return of premium; 2, Whether the insured shall be able to be indemnified against an accident, depends on whether he could provide enough evidences in accordance with the requirement of the proof of indemnity in marine cargo insurance. In this regard, some discussion will be made to the characters of evidences required by indemnity in marine cargo insurance, the rules and criteria of evidences, and the principle of proximate cause.3, If the insurer agrees to indemnify the loss of the insured, he shall do it according to the principles, manners, time limit, and extent discussed in this chapter, the extent of indemnity in marine cargo insurance, in which some arguments will be made to the principles of indemnity, time limit of indemnity, constructive total loss and salvage fees, etc.4, If the underwriter rejects the claim of indemnity, he should contend he shall not be liable or his liability could be deducted in accordance with this chapter, limitation of indemnity in marine cargo insurance. This chapter will discuss the manners of indemnity limitation of the insurer, and make further detailed discussion on three main occasions, namely, where the insured has no insurable interests, where the insured has breached the duty of disclosure, and where the loss of the insured is not covered within the insured period. 5, Whether the insurer shall be able to limit its indemnity liability also depends on whether he has followed the principles discussed in the chapter, frustration of limitation of indemnity in marine cargo insurance. In this chapter, some basic theories about frustration of limitation of indemnity will be discussed, three main manners of frustration will also be analyzed, I.E., failure of the underwriter to fullfill the obligation of explanation, the waive and estoppel of the underwriter, and the contra proferentem rule against disadvantage to the underwriter. 6, When the insurer has indemnified the loss of the insured, he may make a claim to the relevant person liable or sell off the subject-matter of insurance according to the right enumerated in the recoupment of the indemnity of marine cargo insurance. The chapter makes mainly discussions on the cause, function and the five methods of the underwriter's recoupment of the loss which embrace the right of subrogation, the right of disposition of the subject-matter of insurance in the condition of abandonment and the right of contribution in the condition of double-insurance executed by the underwriter etc.